Section 80G Deduction

Section 80G deduction of the Income Tax Act is allowed for amount paid by the taxpayer by way of donation to any fund or institution. For a donation to be deductible, the fund or institution must be registered under the Income Tax Act and have 12A registration.

Donations to certain funds and institutions qualify for deduction of the entire amount donated without any qualifying limit. funds and institutions are admissible as deduction without any qualifying limit. However, deduction in respect of certain donations is subjected to qualifying limit which is 10% of adjusted gross total income.

Qualifying Limit for Section 80G Deduction

Qualifying limit can be calculated as 10% of the gross total income. To calculate gross total income, deduct exempt income forming part of gross total income, amount deductible under section 10A and Section 10AA and amount deduction under Sections 80C to 80U, excluding section 80G.

Donations Eligible for Deduction under Section 80G

No deduction shall be allowed under section 80G of the Income-tax Act, 1961 in respect of a donation of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash. However, with effect from Assessment Year 2018-19 this limit of donation in cash upto ten thousand rupees has been reduced to two thousand rupees. In other words on and after 1 April, 2017 a donation in cash exceeding two thousand rupees shall not be admissible for deduction under section 80G.

100% Deductible without Qualifying Limit

National Defence Fund set up by the Central Government. [Section 80G( 2)( a)( i)]

Fund set up by the State Government of Gujarat exclusively for providing relief to the victims of earthquake in Gujarat. [Section 80G( 2)( a)( iiiga)]

Zila Saksharta Samiti constituted in any district under the chairmanship of the Collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities. Town means a town with a population not exceeding one lakh as per last census. [Section 80G( 2)( a)( iiih)]

National Blood Transfusion Council or any State Blood Transfusion Council which has its sole object the control, supervision, regulation or encouragement in India of the services related to operation and requirements of blood banks. [Section 80G( 2)( a)( iiiha)]

Fund set up by a State Government to provide medical relief to the poor. [Section 80G( 2)( a)( iiihb)]

Army Central Welfare Fund or the Indian Naval Benevolent Fund or the Air Force Central Welfare Fund established by the armed forces of the Union for the welfare of the past and present members of such forces or their dependants. [Section 80G( 2)( a)( iiihc)]

The National Fund for Control of Drug Abuse constituted under section 7A of the Narcotic Drugs and Psychotropic Substances Act, 1985. [Section 80G( 2)( a)( iiihm)]

50% Deductible without Qualifying Limit

Jawaharlal Nehru Memorial Fund. [Section 80G( 2)( a)( ii)]

Prime Minister's Drought Relief Fund. [Section 80G( 2)( a)( iii)]

Indira Gandhi Memorial Trust. [Section 80G( 2)( a)( iiic)]

Rajiv Gandhi Foundation. [Section 80G( 2)( a)( iiid)]

100% Deductible Subject to Qualifying Limit

Donations to the Government or to any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning are entitled for 100 percent deduction subject to qualifying limit of 10 percent of adjusted gross total income.[ Section 80G( 2)( a)( vii)]

50% Deductible Subject to Qualifying Limit

Any fund or any institution established for charitable purposes and approved by the Commissioner of Income-Tax, which is constituted as a

Public charitable trust; or

Registered under the Societies Registration Act, 1860; or

Registered under section 8 of the Companies Act, 2013; or

University established by law, or is any other educational institution recognised by the Government or by a University established by law, or affiliated to any University established by law; or

Is an institution financed wholly or in part by the Government or a local authority. [ Section 80G( 2)( a)( iv)]

Government or any local authority, to be utilised for any charitable purpose other than the purpose of promoting family planning. [Section 80G( 2)( a)( v)]

An authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both. [Section 80G( 2)( a)( vi)]

Donations for the renovation or repair of any such temple, mosque, gurdwara, church or other place as is notified by the Central Government in the Official Gazette to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout any State or States. [Section 80G( 2)( b)]